The problem that some companies have regarding ICOs is that they attempt to circumvent SEC regulations regarding the definition of securities. Companies try to sell coins as investments. When this is done, the coins are securities and must be registered as a 506c offering or a Reg S or other registration. Some companies, while asserting in their offerings that the coins are investments, fail to offer them as registered securities.

There is an exemption for utility coins, but these coins must offer no potential for increased value. For example, if we sold coins that could be redeemed for a discount on a bike, this would be a utility coin and not subject to securities registration. However, in our ICO we will err on the side of safety and only offer the coins as a registered security.